SIP / Indusind Bank / Commercial Vehicle Finance

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Summer Internship Project Report
On
Commercial Vehicle Finance
At Indusind Bank (CFD), Barbil Branch
Submitted By
Samundra Thapa
College Roll No - MBAF17D006
University Roll No - 39471D006
Course - MBA(FM) [2017-2019]
(A project report submitted to D.D. Autonomous College,
Keonjhar in partial fulfillment of the requirements for the award
of Degree of MBA(FM) Program)
Under the Guidance of
External Guide :- Internal Guide:-
Mr Anupam Pania( Branch Manager) Prof. Sujit Kumar Sahoo
Indusind Bank Ltd (CFD), Barbil ,Keonjhar Faculty of DD Autonomous College,Keonjhar
Submitted To
DHARANIDHAR AUTONOMOUS COLLEGE, KEONJHAR
DEPARTMENT OF PROFFESIONAL STUDIES
AFFILIATED TO NORTH ODISHA UNIVERSITY

ACKNOWLEDGEMENT
This project report bears the imprint of many people on it.
I am very much thankful to D.D. AUTONOMOUS COLLEGE, Keonjhar for
the successfulcompletion of my SIP report.
I would like to thank my project supervisor and guide Prof. Sujit Kumar
Sahoo,the Faculty Member, D.D. Autonomous College,Keonjhar , for his
invaluable guidance and assistance in preparing the project report and also
contributing a lot for accomplishment of this Project.
I am highly indebted Mr. Anupam Pania (Branch Manager),Indusind Bank
(CFD) ,Barbil,Keonjhar, my corporate guide ,who guided me during the
intership period and suggested many issues which has been taken care in my
project work.
I am also expessing my indebtedness to my parents and my friends who gave
their full-fledged co-operation for the successfulcompletion of my project.
DHARANIDHAR AUTONOMOUS COLLEGE,
KEONJHAR
PIN -758001, ODISHA, INDIA

Samundra Thapa
MBA(FM) {2017-2019}
D.D. Autonomous College, Keonjhar
DECLARATION
I am Samundra Thapa , a bonafide student of D.D. Autonomous College
,Keonjhar ,pursuing MBA(FM), do herebly declare that the study entitled
“Commercial Vechile Finance ” is my authentic work, I have completed my
study under the guidance of Prof. Sujit Kumar Sahoo(The Faculty Member),
D.D. Autonomous College, keonjhar and my company guide Mr. Anupam
Pania (Branch Manager), Indusind Bank(CFD), Barbil, Keonjhar.
All the data furnished in this project report are authentic and genuine and this
report neither full nor in part has ever been submitted for award of any other
degree to either this university or any other university.
Samundra Thapa
MBA(FM) {2107-2019}
College Roll No :-MBAF17006
University Roll NO :- 39417D006
D.D. Autonomous College
Keonjhar,Odisha

D.D. AUTONOMOUS COLLEGE,KEONJHAR
PIN-758001,ODISHA,INDIA

GUIDE CERTIFICATE
This is to certify that summer intership project entitled “Commercial Vehicle
Finance” Carried out under the direction supervision of Prof. Sujit Kumar
Sahoo, And is accepted as partial Trimester MBA(FM) at D.D.
AUTONOMOUS COLLEGE , Keonjhar, Odisha.
I am satisfied that He had worked sincerely and with proper care.
Summer Internship Project Guide :-
Prof. Sujit Kumar Sahoo
(D.D. Autonomous College,Keonjhar)
D.D. AUTONOMOUS COLLEGE,KEONJHAR
PIN-758001,ODISHA,INDIA

ABSTRACT
Banking system occupies an important place in a nation’s economy. A banking
instiution is indispensable in modern society. It plays a pivotal role in the
ecomony development of a country. Without a sound and effective banking
system in india it cannot have a healthy economy. The banking system of india
should be able to meet new challenges posed by the technology and any other
external and internal factors.
INDUSIND BANK LTD offers a wide range of banking productand financial
services to corporateand retail customer through a variety of delivery channel
and through its specialized subsidiaries and affiliates in the areas of investment
banking.The study is about the commercial vehicle finance services provided by
Indusind Bank with special reference towards Barbil Branch.The study is hoped
to be essential and good to reveal certain facts.
Data collection method was adopted, in which questionnaire is adminstered by
adopting directing interview method to carry out project work.The information
collected was anlyzed through written and graphic method. From this inferences
were drawn. Based on the inference suggestions and recommendations were
given.
Contents

This project report is divided into 8 chapters. They are following:-
CHAPTER-A
A.1 Introduction
A.2 Objectivesof the Study
A.3 Methodologyof the Study
A.4 Limitationsof Study
CHAPTER -B
B.1 Bank’s Profile
B.2 OrganisationName &Location of Internship
CHAPTER-C
C.1 Financial Performance of IndusindBank
CHAPTER-D
D.1 Topic – Commercial VehicleFinance
D.2 Typesof Commercial VehicleLoan
D.3 Featuresof IndusindBankVehicleLoan
D.4 Vehicle LoanInterestRatesinIndusindBank
D.5 Vehicle LoanCommercial Eligibility Criteria
D.6 DocumentationRequired
D.7 Vital Aspectsof a Commercial Vehicle Finance
CHAPTER-E
E.1 Data Analysis andInterpretation
CHAPTER-F
F.1 Conclusion
CHAPTER-G
G.1 Bibliography
CHAPTER-H
H.1 ANNEXURE

A.1 Introduction
A.2 Objectives of the Study
A.3 Methodology of the Study
A.4 Limitations of Study
A.1 Introduction –Banking Industry

Banking Industry
Bank is the backbone of a modern economy.Health of banking industry is one
of the most important pre-conditions for sustained economic progress of any
country.The world of banking has assumed a new dimension at the dawn of the
21st century with the advent of tech banking. There by lending the industry a
stam 0f universality in general banking may be classified as retail and corporate.
Banking retail banking which is designed to meeet the requirements of
indivdual custumber and encourage their saveings includes payment of utility
bills.consumer loans credit cards, checkling account balnaces. Atm transferring
fund between account and the like corporate banking on the other hand caters to
teh need of corporate customer like bills discounting opening letters of credit
and managing cash.
The indian banking scene has changed drastically with the private sector
making inroads in an area hitherto dominated by lage public sector
bank.growing disinvestment is likely impact the banking leading to greater
opertional autonomy.
The development of the indian banking sectore has been accompanied by the
introduction of new norms such as income recognition and capital adequacy.by
the government .the latter implies that banks can lend on the basisof their
respective capital base. These norms have caused banks to contruct equity on
their own. Before going for debt disintermediation is a real threat for banks.of
late banks are adopting the context of the risk associated with them.
The new world o order has ensured survival of the fittest’’ new services are the
order of the EVA{economic value added} concept wherein revenues are
viewed in the context of the risk associated with them.
The new world order has ensured survival of the fittest new services are the
order of the day in order to stay ahead in the ratrace banks are now foraying into

net banking securities,Consumer finance housing finance. Treasury market and
merchant banking and insurance.
As per the Reserve Bank of India(RBI), India’s banking sector is sufficiently
capitalized and well-regulated. The financial and economic conditions in the
country are far superior to any other country in the world. Credit, market and
liquidity risk studies suggest that Indian banks are generally resilient and have
withstood the global downtourn well.
Indian banking industry has recently witnessed the roll out of innovative
banking models like payments and small finance banks.RBI’s new measures
may go a long way in helping the restructuring of the domestic banking
industry.
The digital payments system in india has evolved the most among 25 countries
with India’s Immediate Payment Service(IMPS) being the only system at level
5 in the Faster Payments Innovation(FPII).
Market Size of Indian Banking Industry
The Indian banking system consists of 27 public sector banks, 21 private sector
banks, 49 foreign banks, 56 regional rural banks, 1,562 urban co-operative
banks and 94,384 rural co-operative banks, in addition to co-operative credit
institutions. ‘In FY07-18, total lending increased at a CAGR of 10.94 per cent
and total deposits increased at a CAGR of 11.66 percent. India’s retail credit
market is the fourth largest in the emerging countries. It increased to US$ 281
billion on December 2017 from US$ 181 billion on December 2014.
Investments/Developments in India’s banking industry

Key investments and developments in India’s banking industry include:
 As of september 2018, the Goverment of India launched India Post
Payments Bank(IPPB) and has opened branches across 650 districts to
achieve the objective of financial inclusion.
 The total value of mergers and acquisitin during 17 in NBFC diversified
financial services and banking was US$ 2564 billion, US$ 103 million
and US$ 79 million respectively.
 The biggest merger deal of FY17 was in the microfinance segment of
Indusind Bank Limited and Bharat Financial Inclusion Limited of US$
2.4 billion.
 In May 2018, total equity funding’s of microfinance sector grew at the
rate of 39.88 to Rs 96.31 billion (Rs 4.49 billion) in 2017-18 from Rs
68.85 billion(US$ 1.03 billion).
Current Goverment Initiatives in India’s banking industry
 As of September 2018, the Goverment of India has made the Pradhan
Mantri Jan Dhan Yojana(PMJDY) scheme an open ended scheme and
has also added more incentives.
 As part of goverment’s capital infusion plan of Rs 65,000 crore (US$
9.70 billion) in 21 public sector banks during FY19, Rs 11,336 crore
(US$ 1.69 billion) will be infused in Punjab National Bank, Andhra
Bank, Corporation Bank, and Indian Overseas Bank.
A.2 Objejtives of the Study

a. To understand the “Commerical Vehicle Finance”.
b. To find out the types of Commercial Vehicle loan.
c. To find out the features of Indusind Bank Vehicle Loan.
d. To find out the Vehicle Loan Commercial use eligibility criteria.
e. To find out the Vehicle loan interest rates in Indusind Bank.
f. Documentation required for Vehicle Finance in Indusind Bank.
g. To undrestand the Commerical vehicle finance approval process at Indusind
Bank.
And ,To study consumer prefernce for the above subject and analyze the
satisfaction level of bank to choice Best Customers.
A.3 Methodology of the Study
The whole study depends on data related to Vehicle Finance customers of
Indusind Bank(i.e. Barbil City).
There are two types of data which I have collected for handoutsmy study
primary and secondary data.
Secondary Data
After deciding my objectives I looked for collecting and studying secondary
data.It includes extensive study of literature available in reports of Indusind
Bank in articles,newspapers pamplets,journals,magazines,handouts.
Secondary data refers to data which is collected by someone who is someone
other than the user. Common sources of secondary data for social science
include censuses, informatoin collected by goverment departments,
organizational records and data that was originally collected for other research
purposes.
Primary Data

Primary data means original data that has been collected specially for the
purpose in mind . It means someone collected the data from the original source
first hand. Primary data is data that is collected by a researcher from first-hand
sources, using methods like surveys, interviews, or experiments. It is collected
with the research project in mind, directly from primary sources.The term is
used in contrast with the term secondary data.
Examples :Data collected by a student for his/her thesis or research project.
Telephonoic Interview
Telephone interview is a quantative research tool practised in public
opinoin,customer or other target group survey.Telephone interview is a data
collection method when the resondent on the telephone in accordance with the
prepared questionnaire.
Questionnarie
A list of questions that are answered by many people. A questionnaire is used to
collect information about a particular subject. A set of printed or written
questions with a choice of answers, devised for the purposes of a survey or
statistical study.
A questionnaire is a research instrument consisting of a series of questions for
the purpose of gathering information from respondents. The questionnaire was
invented by Statistical Society of London in 1838.
Executoin of Survey Work
The Survey method is the technique of gathering data by asking questions to
people who are thought to have desired information. A formal list of
questionnaire is prepared.
Generally a non disguised approachis used.
A.4 Limitations of Study

 This research study was time bound and due to this only few customers
accounts were taken up for study.
 This research study was taken in a limited area only (i.e. Barbil City) and
findings may vary if the area of study is increased or changed.
 Some of the respondents might have been biased in their responses as
such the analysis could vary to some extent.
 While anaysis of data,some human errors made possible.

B.2 Organisation Name & Location of Internship

Indusind Bank Limited is a Mumbai based Indian new generation
bank, established in 1994. The bank offers commercial, transactional and
electronic banking products and services. Indusind Bank was inaugurated in
April 1994 by then Union Finance Minister Manmohan Singh. Indusind Bank is
the first among the new-generation private banks in India.
The bank started its operations with a capital amount of Rs. 1 billion among
which Rs. 600 million was raised by the Indian Residents and Rs. 400 million
was raised by the Non-Resident Indians. The bank has specialized in retail
banking services and continuously upgrades its support systems by introducing
newer technologies. It is also working on expanding its network of branches all
across the country along with meeting the global benchmark. According to the
bank, its name is derived from the Indus Valley Civilisation.
As on June 30, 2016, IndusInd Bank has 1,004 branches, and 1885 ATMs
spread across 625 geographical locations of the country. It also has
representative offices in London, Dubai and Abu Dhabi. Mumbai has the
maximum number of bank branches followed by New Delhi and Chennai. The
bank has also proposed to double the branches count to 1200 by March 2017.

Type Public
Traded as NSE: INDUSINDBK BSE: 532187
Nifty Constituent CNX
Industry Banking
Financial services
Founded 1994 (24 years ago)
Founder S. P. Hinduja
Headquarters Mumbai, Maharashtra, India.
Key people R.Seshasayee (Chairman)
Romesh Sobti (MD & CEO)
Products Credit cards, Consumer banking, Corporate banking, Finance and Insurance,Mortgage loans, Private banking,
Wealth management,Investmentbanking.
Revenue
₹18,577.16crore(US$2.7billion)(2017)
Operating income
₹5,451.01crore(US$790 million)(2017)
Net income
₹2,867.89crore(US$420 million)(2017)
Total assets
₹178,648.41 crore(US$26 billion)(2017)
Owner HindujaGroup
Number ofemployees 25,314 (2017)
Capital ratio 15.31%
Website - www.indusind.com

Board of directors:
Mr. Ramesh Sobti has joined the bank as Managing Director & CEO , taking
charge from Mr.BhaskarGhose. Mr. R. Seshasayee, a Chartered Accountant by
profession is the current Chairman. The other members on the board are Dr.
T.T. Ram Mohan, Mr Ajay Hinduja, Mr. S.C. Tripathi, Mr Ashok kini , Mrs
KanchanChitale, Mr Vijay Vaid, Mr. R.S. Sharma and Mr. Y.M. Kale.
Awards for Indusind Bank
2012-2013
 Award “The best bank award among small banks for TT for Operational
Effectiveness” by Institute for Development and Research in Banking
Technology (IDRBT).
 Award “Top Green IT E nterprise Award 2012- CIO Magazine”.
 CISO- Awaded one of the Top 100 Chief Information Security Officer
awards 2012, organized by Info Security Magazine and iViz Security.
 NASSCOM IT User Award 2012 for “Enviromental Sustainability”(Frost
& Sullivan).

2011-2012
 Awarded as the “Best Bank Mid-sized Bank” in Business Today- KPMG
BEST Banks Survey 2011.
 Awarded M.I.T.R. 50 Marketing & IT Recognition Program amongst top
50 brands- Organised by Paul Writer in association with IBM.
 The CII Enviromental Best Practice Award 2012 for the “Most
Innovative Project”.
 Awarded in the”Business Enterprise Services” category for running
ATMs on solar power- Organised by Panasonic Green Globe Foundation.
 Awarded the status of Star Brand 2011 ICMR Star Brands of India
Survey.
 Awarded the “Best Bank in New Generation category” by the STATE
FORUM OF BANKERS CLUB KERALA.
 Awarded “Most Improved Bank Performance of the Year” at Financial
Leadership Awards 2012(Bloomberg UTV).
Slogan
Indusind Bank has used many slogans to promote their cause. Some of the
slogans used by the bank are”We Care.. Dil Se” and “We Make You Feel
Richer”.

IndusInd Bank will be:
 A relevant business and banking partner to our clients
 Customer Rreponsive, striving at all times to collaborate with clients in
providing solutions for their banking needs.
 A forerunner in the market place in terms of profitability, productivity
and efficiency.
 Engaged with all our stakeholders and will deliver sustainable and
complaint returns.
Mission:
We will consistently add value to all our stakeholders and emerge as the ‘best-
in-class’ in the chosenparameters amongst the comity of banks, by doubling
our profits, clients and branches within the next three years.
Ratings
ICRA AA for Lower Tier 2 subordinate debt program by ICRA and ICRA AA-
for Upper Tier 2 bond program by ICRA CRISIL A1+ for certificate of deposit
program by CRISIL CARE AA for Lower Tier 2 subordinate debt program by
CARE Ind AA- for Upper Tier 2 bond program by India Ratings and Research
and Ind A1+ for Short Term Debt Instruments by India Ratings and Research.

B.2 Organisation Name & Location of Internship
Organisation - Indusind Bank (CFD), Barbil Branch.
Location - St Mary SchoolRoad,
Barbil -758035,
Dist – Keonjhar ,Odisha.
India.

C.1 Financial performance of Indusind Bank

C.1 Financial Performance of Indusind Bank
Financial performance refers to the act of performing financial activity. In
broader sense, financial performane refers to the degree to which financial
objectives being or has been accomplished. It is the process of measuring the
results of a firm’s policies and operations in monetary terms.
Financial performance represent a formal record of the financial activities of an
entity. These are written reports that quantify the financial strength ,
performance and liquidity of a company. Financial performance reflect the
financial effects of business transactions and events on the entity.
The three main types of financial statements are:
a. Financial Ratios
b. Profit & Loss Account
c. Balance Sheet
a. Financial Ratios

Financial Ratios of Indusind Bank
*in (Rs Cr.)
Particulars March 2018 March 2017
Face Value 10.00 10.00
Dividend per share 7.50 6.00
Operating profit per share (Rs) 35.28 24.58
Net operating profit per share(Rs) 287.91 240.84
Free Reserves per share(Rs) - -
Bonus in equity Capital - -
Interest Spread 6.77 7.14
Adjusted Cash Margin (%) 17.32 16.46
Net Profit Maragin 20.86 19.90
Return on long term fund(%) 65.05 62.71
Return on Net Worth(%) 15.36 14.15
Adjusted Return on Net Worth(%) 15.36 14.15
Return on Assets Excluding
Revaluations
390.94 338.65
Return on Assets including
Revaluations
396.97 344.91
Interested Income/Total Funds 8.65 9.06
Net Interest Income/Total funds 3.75 3.81
Non Interest Income/Total Funds 2.38 2.62
Interest Expended/Total Funds 4.90 5.25
Operating Expenses/Total Funds 2.69 2.89
Profit before provisions/Total Funds 3.33 3.43
Net Profit/Total Funds 1.81 1.80
Loans Turnover 0.13 0.14
Total Income/Capital Employed(%) 11.03 11.69
Interest Expended/Capital
Employed(%)
4.90 5.25
Total Assets Turnover Ratios 0.09 0.09
Asset Turnover Ratio 0.09 0.10
Interested Expended/Interested
Earned
56.61 57.92
Other Income/Total Income 21.56 22.45
Operating Expenses/Total Income 24.42 24.72
Selling Distribution/Cost Composition 0.18 0.34
Capital Adequacy Ratio 15.03 15.31
Advances/Loans Funds(%) 85.53 85.61
Credit Deposit Ratio 92.75 91.77
Investment Deposit Ratio 31.19 30.93
Cash Deposit Ratio - -
Total Debt to Owners Fund 8.09 7.36
Financial Charges Coverage Ratio 1.70 1.68
Financial Charges Coverage Ratio Post
Tax
1.39 1.37
Current Ratio 0.08 0.07
Quick Ratio 21.38 14.45
Dvidend Payout Ratio Net Profit 11.98 0.01
Dividend Payout Ratio Cash Profit 11.32 0.01
Earning Retention Ratio 88.02 99.99
Cash Earning Retention Ratio 88.68 99.99
Adjusted Cash Flow Times 39.72 41.38
Earnings Per Share 60.08 47.95
Book Value 390.94 338.65

b. Profit & Loss Account
Profit & Loss Account of Indusind Bank
*in(Rs Cr.)
Particulars March 2018 March 2017
Interest Earned 17280.75 14405.67
Other Income 4750.10 4171.49
Total Income 22030.85 18577.16
Interested expended 9783.30 8343.07
Employee Cost 184.99 1521.02
Selling and Admin Expenses 32.55 50.34
Depreciation 211.64 190.70
Miscellaneous Expenses 8212.38 5604.15
Preoperative Exp Capitalised 0.00 0.00
Operating Expenses 5591.44 4783.08
Provisions and
Contingencies
3050.12 2583.13
Total Expenses 18424.86 15709.28
Net Profit for the Year 3605.99 2867.89
Extraordinary items 0.00 0.00
Profit brought Forward 7118.38 5013.45
Total 10724.37 7881.34
Preference Dividend 0.00 0.00
Equity Dividend 432.24 0.46
Corporate Dividend Tax 0.00 0.00
Earning Per Share(Rs) 60.08 47.95
Equity Dividend(%) 75.00 60.00
Book Value(Rs) 390.94 338.65
Transfer to Statutory
Reserves
980.63 762.51
Transfer to other Reserves 0.00 0.00
Proposed Dividend/Transfer
to Govt.
432.24 0.46
Balance c/f to Balance Sheet 9311.49 7118.38
Total 10724.36 7881.35
c. Balance Sheet
Balance Sheet of Indusind Bank

*in (Rs Cr.)
Particulars March2018 March2017
Total Share Capital 600.22 598.15
Equity Share capital 600.22 592.15
Share Application
Money
0.00 0.00
Preference Share
Capital
0.00 0.00
Reserves 22866.26 19659.66
RevaluationReserves 362.20 374.59
Net Worth 23828.68 20632.40
Deposits 151639.17 126572.22
Borrowings 38289.08 22453.69
Total Debt 189928.25 149025.91
Other liabilities and
Provisions
7856.27 8976.38
Total liabilities 221613.20 178634.69
Cash and Balances with
RBI
10962.41 7748.75
Balance withbanks ,
Money at Call
2253.47 10879.51
Advances 144953.66 113080.51
Investments 50078.33 36703.62
Gross Block 1313.31 1306.80
Accumulated
Depreciation
0.00 0.00
Net Block 1313.31 1306.80
Capital Work in Progress 25.44 28.44
Other Assets 12041.16 8902.28
Total Assets 221627.78 178649.91
Contingent liabilities 699514.64 425394.10
Bills for Collection 0.00 0.00
Book Value(Rs) 390.96 338.68

D.1 Topic – Commercial Vehicle Finance
D.2 Types of Commercial Vehicle Loan
D.3 Features of Indusind Bank Vehicle Loan
D.4 Vehicle Loan Interest Rates in Indusind Bank
D.5 Vehicle Loan Commercial Use Eligibility Criteria
D.6 Documentation Required
D.7 Vital Aspects of a Commercial Vehicle Finance

D.1 Topic –Commercial vehicle Finance
Commercial Vehicles preciseely are all vehicles used for different sorts of
commercial purposes. Any vehicle which exceeds a certain prescribed weight is
considered to be a commercial vehcile. Therfore trucks, vans and buses used for
business purposes are termed as commercial vehicles. The use of commercial
vehicles is inevitable in all sorts of business . But owing to their high prices,
many business organizations seek aid of commercial vehicle financing.
Commercial vehicle financing helps individuals and corporate customers to
acquire any type of commercial vehicles. There are various options available
for financing commercial vehicles.Catering truck financing is one among them
which helps to acquire food trucks, lunch wagons etc. The catering business
people require these vehicles to supply food to several locations. These trucks
are highly useful in construction sites,road sides, fairs and other places. They
are helpful in providing hot meals or cold beverages. Due to their special feature
of keeping food hot or cold,they can be pricely. Hence commercial vehicle
financing is essential for purchasing such type of vehicles.
Commercial recreational vehiles are important in any mobile business.These
vehicles cater to the unique requirements of the business and so they are costly.
Sometimes commercial recreational vehicles can be modified into mobile
classrooms,offices,salons etc.Many of the traditional lenders many not
understand the need for commercial recreational vehicles.Therefore they may
not be ready to offer financing to acquire them. However there are some
genuine companies that have experience in financing commercial vehicles.They
can offer financial assistance to get the vehicle for any type of mobile business.
Since these vehicles can help generate revenues,investing in them is not an
expense but a great way to increase profitability.

Banks provide funding of all segments in the transportation industry for all
kinds of commercial vehicles, such as :
 Trucks – Small trucks ,light trucks, medium trucks, heavy trucks,
customised trucks.
 Buses – Intercity, intracity,school & college buses,staffbus.
 Tankers – Water tanker ,oil tanker ,milk tanker, petroleum tanker,
chemical tanker,gas tanker.
 Small and light commercial vehicles.
D.2 Types of Commercial Vehicle Loan
Commercial loan can be availed for a variety of commercial vehicles which are
used at different places to serve various purposes. Based on the type of vehicles
these loans are sought for, commercial vehicle finance is differentiated in three
broad categories namely:
1.New Commercial Vehicle Loan
This type of commercial vehicle loan is provided to the customers for the
purchase of new commercial vehicles for business purpose. Banks offer up to
100% funding on the chassis or base frame value of the vehicle.Some of the
banks provide additional funding for the body construction of the vehicles in
selective cases based on the borrower’s profile.
2. Old Commercial Vehicle Loan
Old or used commercial vehicle loan are those loans which are offered to
purchase all makes of pre-owned or used commercial vehicles. Under this
loan,borrowers can expect to get finance against old vehicles which are up to 15
years old. Most of the banks provide up to 90% funding on the used vehicle’s
value or depreciation grid value.

3. Commercial Vehicle Refinancing
Under commercial vehicle refinancing, banks either offer loan on an existing
commercial vehicle which is free of loan or take over an existing commercial
vehicle loan and provide additional finance for it based on eligibility. While
some borrowers can reduce the monthly EMIs of their existing loan and free up
some cash by refinancing an existing loan at lower interest rates, some others
can get direct finance on their free vehicles to meet the working capital need.
D.3 Features of Indusind Bank Vehicle Loan
- Easy Online Application.
- Faster Loan Processing.
- Speedy disbursement of the loan amount.
- Loans available for broad range of vehicles and customer segments.
- Attractive interest Rates.
- No collateral required.
- Flexibilty to choosethe payment mode.
- Flexibility to choosethe fixed or floating interset rate option.
- Flexibility to choosethe tenure.

D.4 Vehicle loan Interest rates in Indusind Bank
LOANS TO INDIVIDUAL
BORROWERS
INTEREST RATE RANGE
Model Min Max Mean
Small CommercialVehicles 12.00 28.00 22.00
Passenger Cars 10.65 15.50 13.30
Construction Equipment 10.60 15.00 12.00
Light Commercial Vehicles 10.65 16.00 13.45
Medium and Heavy Commercial
Vehicles
10.60 15.00 12.00
Multi Utility Vehicles(JEEP) 10.60 16.00 13.00
Tractor 13.70 23.50 16.65
Two Wheelers 12.00 29.00 23.60
Used/Preowned Vehicles 14.00 21.00 16.75
*Indicative interest rates basis Jan-Mar16 data, actual interest rates
would be basis the profile of the Customer.

D.5 Vehicle Loan Commercial Use Eligibility Criteria
Eligibility Criteria for a Single Taxi
Age limit – Minimum 25 years at the time of application up to maximum 65
years.
 Business Experience – Valid driving license with badge for atleast 3 yrs.
 Residence stability – 3 years in the city and 1 year in the current
residence.
 Own House Ownership – Mandatory own residence in the name of
applicant or co-applicant.
 Guarantor – Compulsory gurantor with atleast 12 months of commercial
experience validated with a Repayment track/RC Copy/license badge.
 Should have a CIBIL score of above 600 and above. Should not be from a
Negative or caution profile.
Eligibility Criteria for fleet size at more than 1
 Age limit – Minimum 25 years at the time of application . You can serve
the entire loan tenure up to a maximum of 65 years of age.
 Business Experience – Ownership of 1 Vechicles and above validated
with RC copy.

 Residence Stability – 3 years in the city and 1 yaers in the current
residence.
 Own house Ownership – Optional residence in the name of applicant or
co-applicant.
 Guarantor – KYC Required.
 Repayment track – At least one repayment track to be documented with
12 months seasoning.
 EXPERIENCE validated with a Repayment track/RC Copy/License
badge.
 Should have a CIBIL score of above 600 and above. Should not be from a
Negative or caution Profile.

D.6 Documentation Required
All customers are requested to provide originals for one-time
verificiation.
Verification Valid Proof
Borrower & Co-Borrower
Identity
2 passport size photos
Proof of Identity
(Both Borrower & Co-
Borrower)
Self-attested photocopy of
any one of the following:-
Driving License
Passport
Voters ID
Aadhaar Card
PAN card
Proof of Residence
(Both Borrower & Co-
Borrower)
Self-attested photocopy of
any of the following:-
Driving License
Passport
Voters ID
Aadhaar Card
Utility Bills
Bank Statement for 6 months immediatley prior to date of
Application.
Drive Experience Proof Driving license with badge
Guarantor experience Proof Ownership of Vechile RC
Copy Driving license with
badge

D.7 Vital Aspects of a Commercial Vehicle Finance
Application Process
At first, the borrower need to fill up an application form
online/offline. Then furnish all the necessary documents and finally
provide the details of the personal guarantor of required.
Loan Approval
 KYC Verification
Know Your Customer (KYC) is the process of a business
identifying and verifying the identify of its clients. The
term is also used to refer to the bank and antmoney
laundering regulations which governs these activities.
 CIBIL Score Check
CIBIL ( Credit Information Bureau of India Limited)
Transunion Score is a 3 digit number which represents
Credit history. This score is calculated on the basis of
credit report which contains credit history. The CIBIL
Score ranges from 300 to 900. Should have a CIBIL score
of above 600+. Should not be from a Negative or caution
profile.
The bank will run a check to verify the documents and
borrower’s eligibility. If the borrower is found to be
eligible , the loan will be approved within 2 to 5 working
days form the time of documentation.

Processing charges
Banks ask for a minimal non-refundable amount for processing a
commercial vechile loan. This amount depends on the amount of the
loan applied for and generally ranges from 2% to 4% of the loan
amount.
Loan Amount / Margin
The maximum loan amount for commercial vechicles varies fron
customer to customer based on their individual profile. A borrower
can get up funding of up to 100% of the Vechile’s Chassis.
Repayment tenure
The repayment tenure for a commercial vechile loan usually starts
from 6 months and goes up to 60 months (5 years). The borrower is
allowed to repay the amount in easy monthliy EMIs.
Security/Collateral
While certain banks offer loans for commercial vechiles without any
security or guarantor ,some require a guarantor or co-applicant
depending on the borrower’s profile and the product.
Pre-Payment of loan
The borrowers can prepay the loan after 6 months of availing it by
paying a pre payment fee of up to 50% of the remaining loan amount.
However, part Pre-Payment at the loan is usually not allowed.

E.1 Data Analysis and Interpretation
E.1 Data Analysis and Interpretation

1. How do you rate the ‘Commercial Vehicle Finance’ facilities of
the Indusind Bank ?
Table -1
Category of Response No of Response Percentage(%)
Highly Satisfied 40 40
Satisfied 20 20
Averagely Satisfied 30 30
Dissatisfied 10 10
Highly Dissatisfied 0 0
Total 100 100
Interpretation :-
According to the data (Table-1), it can be inferred that, out of 100
customers of Indusind Bank, 40% customers are highly satisfied, 20%
customers are satisfied, 30% customers are Averagely Satisfied and
10% customers are Dissatisfied. Form the data we get to know that
none of the customers highly dissatisfied by the Commercial Vehicle
Finance facilities of Indusind Bank.
2.How do you approach Indusind Bank for a Vehicle Finance ?
0%
50%
100%
Percentage(%)
No of Response
Percentage(%)Table-1
Highly Satisfied
Satisfied
Aveargely Satisfied
Dissatisfied
Highly Dissatisfied

Table -2
Satisfied 20 20
Dissatisfied 20 20
Total 100 100
Interpretation :-
5% of the customers highly dissatisfied by to the apporach Indusind
Bank for Vehicle Finance.
3.How do you approach the typical tenure of a Vehicle Finance ?
0
10
20
30
40
Highly
Satisfied
Satisfied Averagely
Satisfied
Dissatisfieed Highly
Dissatisfied
No of Response
Percentage(%)
Highly Satisfied
Satisfied
Aveargely Satisfied
Dissatisfied
Highly Dissatisfied

Table -3
Satisfied 20 20
Dissatisfied 20 20
Total 100 100
Interpretation :-
5% of the customers highly dissatisfied by to the apporach the typical
tenure of a Vehicle Finance.
4.How do you rate the ‘Lending Rate of Interest’ for Vehicle
Finance at Indusind Bank ?
Table -4
No of Response
Percentage(%)0
20
40
No of Response
Percentage(%)
Highly Satisfied
Satisfied
Aveargely Satisfied
Dissatisfied
Highly Dissatisfied

Satisfied 25 25
Dissatisfied 25 25
Total 100 100
Interpretation :-
none of the customers highly dissatisfied by the ‘Lending Rate of
Interest’ for Vehicle Finance at Indusind Bank .
5.How do you rate the ‘Commercial Vehicle Finance’ loan
approval process at the Indusind Bank ?
Table -5
No of Response
Percentage(%)0
20
40
No of Response
Percentage(%)
Highly Satisfied
Satisfied
Aveargely Satisfied
Dissatisfied
Highly Dissatisfied

Satisfied 20 20
Dissatisfied 10 10
Total 100 100
Interpretation :-
none of the customers highly dissatisfied by the Commercial Vehicle
Finance loan approval process at the Indusind Bank.
6.How do you rate the ‘Products and Services’ of the Indusind
Bank ?
Table -6
0%
50%
100%
Percentage(%)
No of Response
Highly Satisfied
Satisfied
Aveargely Satisfied
Dissatisfied
Highly Dissatisfied

Satisfied 30 30
Dissatisfied 20 20
Total 100 100
Interpretation :-
none of the customers highly dissatisfied by the Products and Services
of Indusind Bank.
0
20
40
60
80
Highly
Satisfied
Satisfied Averagely
Satisfied
Dissatisfieed Highly
Dissatisfied
Percentage(%)
No of Response
Highly Satisfied
Satisfied
Aveargely Satisfied
Dissatisfied
Highly Dissatisfied

F.1 Conclusion
F.1 Conclusion

After doing a depth research and studying the materials available on
internet, newspapers, magazines and journals, I want to conclude that
Indusind Bank’s commercial Vechile Finance facilities are beneficial
for small enterprenur,middle-class family and Start-up company. And
most important part of “Commercial Vehicle Finance” approval
process is CIBIL.
The benefits of Indusind Bank’s Commercial Vehicle Finance are
following:-
 Makes easy to buy Vehicles
 Flexibility to choose the tenure
 Loan for buying used Vehicle
 No collateral required
 Flexibility to choose the payment mode
 Flexibility to choose the fixed or floating interest rate option

G.1 Bibliography
G.1 Bibliography

Journals:-
 ANNUAL REPORTS AND MANUALS of Indusind Bank Ltd.
 AGREEMENT & PDC CHECKLIST of Indusind Bank.
Websites:-
 www.wikipedia.com
 www.google.com
 https://motorvehiclefinance.co.nz
 www.indusind.com
 www.cibil.com
 www.moneycontrol.com
 www.bankbazzar.com
Text Books:-
 Kothari CR “Research Methodolgy” Wishwa Prakashan, New
Delhi ,2001.
 V. Nityanada Sarma “Banking & Financial Systems” Cambridge
University Press India Private Limited ,2011.
 Mariamawit Desta Kebede “Banking & Financial Performance
Analysia” LAP Lambert Academic Publishing, 2012.

H.1 ANNEXURE
H.1 ANNEXURE
Dear Sir/Madam,
............................

I am a student of D.D Autonomous College, Keonjhar and presently
doing a Project on “Commercial Vechile Finance”. I request you to
kindly fill the questionnarie below and I assure you that the data
generated shall be kept confindental.
Questionnaire:-
 How do I approach Indusind Bank for a Vechile Finance ?
 What is the loan tenure options?
 What is the typical tenure of a Vehicle loan?
 What is the quantum of finance one can avail?
 What are the lending Rates?
 How is the interest changed/calculated?
 Who can be the co-applicants for the loan?
 What security/collateral do I have to provide?
 How do I repay the vechile loan?
 Do I need to open account with Indusind Bank for availing and/
or servicing the loan?
 If I am not able to furnish my income documents is there a
special scheme for persons like me?

 Can I avail of a loan on my existing Vechile?

SIP / Indusind Bank / Commercial Vehicle Finance

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